This Fall Marsha and Jeff Paid $5,000 for Their Son

question 26

Multiple Choice

This fall Marsha and Jeff paid $5,000 for their son Josh's tuition and fees at State University (a qualified education institution) . They also paid $1,000 for Josh's books. How much of these two payments can Marsha and Jeff deduct this year, assuming Josh is their dependent and their modified AGI is $135,000?

• A) Marsha and Jeff can deduct $5,000 for AGI.
• B) Marsha and Jeff can deduct $4,000 for AGI.
• C) Marsha and Jeff can deduct $2,500 for AGI.
• D) Marsha and Jeff can deduct $2,000 for AGI.
• E) None - the tuition is not deductible.

---

Definitions:

Clause

A specific provision or section within a contract or legal document that stipulates particular terms, conditions, or obligations.

Frustrated Contract

A legal concept describing a contract that, due to unforeseeable circumstances, has become impossible to perform, thus being voided without penalty to either party.

Material Alteration

The major alteration of an agreement that has the effect of discharging the contract and replacing it with another.

Renegotiate

The process of revising the terms and conditions of an existing contract through mutual agreement between the involved parties.